Governance, risk and compliance (GRC) – what you need to know
Many organizations dedicate a lot of time to GRC management – and with good reason. Managing GRC has become a central area in most organizations.
What is GRC?
Governance, risk and compliance is a set of processes and practices that run across departments and functions that have the purpose of ensuring that the organization achieves its objectives and live up to its responsibilities.
Basically, every organization has an inherent goal of taking exactly as much risk as needed to achieve its objectives, no more. And no less, for that matter, because you cannot run a business without taking risks.
The importance of GRC management
Effective management of governance, risk and compliance can help reduce risks, improve the effectiveness of controls, and ensure a unified approach towards security and compliance. Efficient management can help avoid the negative effects of silos in the governance, assurance and management of business attributes. GRC management also help organizations obtain a clear picture of the overall performance, which will provide accurate insights on which initiatives generate the most value.
The increased focus on GRC is partly due to a steep increase in regulations – derived from events like the latest financial crisis and scandals where manipulation of financial numbers and corruption has led to the fall of large organizations. Initiatives like the EU General Data Protection Regulation has also increased the focus on GRC management. This increase in regulations has also led to the emergence of the concept of RegTech – click here to learn more.
This way, regulatory risk has become a much more tangible risk area than what it used to be: regulatory non-compliance can actually destroy your business nowadays.
More than just governance, risk and compliance
The scope of GRC does not end with management of governance, risk and compliance: It also includes assurance and performance management, and information security management, quality management, and ethics management are also aspects of GRC. You can probably add even more examples of how regulatory risk drives new areas of governance, risk and compliance in your company, and even more will follow in future.
A solution for GRC
Impero offers a cloud-based GRC solution that is used for risk and control. Impero is a cloud-based compliance solution that facilitates compliance and enables alignment and efficiency in administrative processes. Gathering all work in Impero makes accessing, sharing and creating documentation easy and efficient, so that the number of redundant tasks within risk, compliance and assurance is kept to a minimum. Being in the cloud, Impero can be accessed from all kinds of devices: smartphones, tablets and computers, and, thanks to the intuitiveness of the platform, implementation takes no time.